DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 28-92
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	DONALD J. KULICK Administrator for Regional Management
SUBJECT	:	Implementation of Quality Control (QC) Program Improvement (PI) Recommendations into the Unemployment Insurance (UI) Program

1. Purpose. To provide limited resources for State employment security agencies (SESAs) to implement QC/PI recommendations within their mainstream UI program.

2. References. UIPL 33-89 (May 18, 1989), and UIPL 34-91 (July 24, 1991).

3. Background. During the past several years, many SESAs have implemented a wide range of PI recommendations. In most of these cases, the cost of the improvement was negligible and could be accommodated within existing funding. In other cases the cost of the implementation was considered an investment, in view of the SESAs' projected savings. Unfortunately, a number of other projects were not implemented due to limited administrative resources. It has become apparent that States need additional support to undertake some of the QC/PI recommendations. During Fiscal Year 1990 (FY '90) the National Office (NO) provided three selected SESAs with the resources necessary to implement QC recommendations. In FY '91 resources were provided to five States.

4. Policy. The NO will continue in FY '92 to provide limited PI implementation funding for SESAs to implement QC/PI recommendations within their UI program. States are invited to submit proposals for additional funds for FY '92. The proposal eligibility is open to all States that have documented problems identified through QC findings that need to be corrected to improve operations, but do not have sufficient funding to implement these improvements. SESAs submitting requests for additional funding should describe: problems resulting from QC findings; what are changes, actions, etc. to be accomplished in the proposed project; the type of personnel that will be involved; and the additional resources in staff and material (i.e., programming and equipment) that will be required, including one-time start-up costs. The proposal must also contain the timeframes for the process including development, training and implementation. In addition, where outside contractor assistance is necessary, the proposal must include an estimate of the level of contractor effort. Proposals should plan an initial implementation by October 1, 1992. After one year of operation, SESAs must submit a report describing the implementation effort and the resulting outcomes. This report should be received in the NO by December 17, 1993. The SESA must also agree to periodic Regional Office/NO monitoring of progress Funds granted for PI implementation are for the express purpose presented in the agency's proposal as approved, including any clarifications or stipulations made by the Department. By accepting funding for this initiative, States are agreeing to the conditions and timeframes set forth in the proposal. Failure to implement funded proposals, or redirection of the total funds allocated for this purpose, may subject the funding to recapture or audit exception. SESAs which are unable to initiate projects and or obligate the funds for UI implementation should return those funds to the NO as soon as they become aware of the inability to implement the project, so that other approved projects may be funded. In the event unforeseen circumstances prevent the State from obligating these funds by December 31, 1992, a formal extension request must be submitted to the NO, Office of Quality Control. The extension request should provide a detailed explanation of the circumstances, and should be for a limited time period only.

5. PI Implementation Funding. The total dollar amount to be set aside for this project is not yet available. However, the NO will provide funding to those SESAs selected until the amount dedicated to the initiative is exhausted. The NO must obligate the funding by September 30, 1992.

6. Procedures for Submitting and Reviewing Proposals.

   1. State Agency Procedures SESAs wishing to undertake QC/PI implementation projects should submit a comprehensive proposal based on the criteria above. Attachment A provides an outline for proposals. The proposal must be received in the appropriate RO no later than sixty (60) days from the date of this UIPL. The Regional Office (RO) should submit these proposals to the NO, Attn: TEUQI as soon as possible.

   2. NO Proposal Review Procedures Proposals received timely by the NO will be evaluated according to the procedure contained in Attachment B. The panel will review each proposal to determine if the proposal is consistent with the format contained in Attachment A.

7. Action Required. SESA administrators are requested to provide this information to appropriate staff.

8. Inquiries. Questions should be directed to the appropriate RO.

9. Attachments. 

   State Proposal Format

   Panel Proposal Review Procedures